S&P 500, Nasdaq End Third Straight Week Lower As Investors Move Away From Tech, AI — AMZN, INTC, LLY, RBLX In Focus

• The S&P 500 ended Friday 2% lower, the Nasdaq 100 fell 3.5%, and the Dow Jones Industrial Average eased 1.1%.
• Intel Corp. slid the most in more than four decades after its outlook missed estimates. 
• The Nasdaq 100 recorded its worst month since March last year.

U.S. stock indices ended lower on Friday, with the S&P 500 and Nasdaq also closing the month lower after investors moved out of the tech and AI play after a host of third-quarter results failed to meet investor expectations and as bloated AI capex plans weighed on tech cash flows.  

The S&P 500 ended Friday 2% lower, the Nasdaq 100 fell 3.5%, and the Dow Jones Industrial Average eased 1.1%. The Russell 2000, which tracks small-cap stocks, dropped 1.7%. The Nasdaq 100 dropped about 6.5% this month, its worst monthly performance since March last year. 

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The SPDR S&P 500 ETF (SPY) fell 1.7%, and the SPDR Dow Jones Industrial Average ETF (DIA) slipped 1%. Meanwhile, the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) ended 3.3% lower on Friday.  

Meanwhile, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF dropped between 6.5% and 8% each on Friday amid weakness in Nvidia (NVDA), AMD, Micron Tech (MU) and Broadcom (AVGO). The broader Vanguard Information Technology ETF (VGT) fell 4%.

Retail sentiment on Stocktwits for SPY improved to ‘bullish’ from ‘neutral’, while it remained in ‘bearish’ territory for DIA and QQQ.

US Market Drivers

Intel Corp. (INTC) plunged the most in over forty years after posting disappointing quarterly results and issuing a soft outlook due to weakness in personal computers. Revenue within its client computing and physical AI division dropped 5% year-over-year to $8.1 billion, making it the worst performer in the Nasdaq 100 this month.

Core revenue streams across U.S. mega-cap technology firms — encompassing digital advertising, consumer demand, and retail platforms — are showing early signs of decelerating, even as collective artificial intelligence capital expenditures swell toward $750 billion this year.

Earlier this week, Alphabet shares posted their worst day on record after missing third-quarter earnings and revenue expectations.

“We’re moving out of the hopes and dreams phase of the AI trade and into the ‘show me’ phase,” Joe Tigay at Equity Armor Investments told Bloomberg. “Full order books are great, but investors want to see who can actually deliver.” 

Investor attention will now be solely on the mid-term elections due next week. 

Key Trending Stocks

Amazon.com Inc. (AMZN) has arranged up to $80 billion in supplier financing credit line as it prepares for aggressive infrastructure spending to power its artificial intelligence initiatives. 

Shares of Eli Lilly (LLY) and AbbVie (ABBV) climbed to new record highs on Friday after the pharmaceutical behemoths reported stronger-than-expected third-quarter earnings and raised their full-year 2026 outlooks. 

A potential merger between Tesla (TSLA) and SpaceX (SPCX) could face its biggest regulatory challenge in China, Bank of America reportedly said on Friday, citing Tesla’s dependence on its Shanghai factory and SpaceX’s ties to the U.S. defense industry. 

Bank of America guided investors toward mega-cap technology corporate bonds instead of equities as an investment opportunity. Michael Hartnett, chief investment strategist at BofA, noted that fixed-income instruments issued by the "Magnificent Seven" and other major tech players provide compelling value. 

Roblox (RBLX) shares plunged about 20% on Friday, putting the stock on track for its worst single-day decline since July, after the gaming platform reported weaker user engagement and issued a disappointing outlook for fourth-quarter bookings. 

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